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EU likely to regulate Packagers

Mortgage packagers could find they become regulated as a result of the European Union attempts to harmonise mortgage market.

Chris Cummings, director general of the Association of Mortgage Intermediaries warned delegates on the second day of the Packager Summit in Nice: The definition of an intermediary in the up-coming EU white paper on mortgage regulation encompasses packagers as well.

Cummings says this is as a result of the way in which other European mortgage markets operate.

The white paper is expected in May and there have been early indications that it will bring the rest of Europe in line with the UK mortgage market.

But the fact packagers are defined as intermediaries in the white paper suggests the European Commission may be willing to go further in the regulations it proposes than the UK regulator has so far.

Delegates at the Summit, however, seem unconcerned about the possibility of regulation with the vast majority stating they already were regulated by the FSA.

The news packagers may finally be regulated by the back door follows recent research from the regulator which found 48% of brokers simply accepted product recommendations from mortgage packagers without doing research themselves.


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